Bitcoin Enters Transition Phase as Dormant Coins Begin Moving

Bitcoin's on-chain data is showing signs of a market transition, rather than a major sell-off. Despite some spikes in Coin Days Destroyed (CDD), a measure of older Bitcoin movement, levels remain far below those seen during previous market peaks. In July, CDD jumped to 32 million on July 2, dropped to 3 million two days later, and continued fluctuating, most recently reaching around 9.8 million.

According to CryptoQuant data, long-term holders are becoming more active, but there are few signs of panic selling or large-scale profit-taking. The movement could be the result of investors adjusting their holdings, moving coins between wallets, or preparing for future market moves.

NUPL (Net Unrealized Profit/Loss) and MVRV (Market Value to Realized Value) ratio indicate that investor profits have declined, reducing extreme optimism often seen near market peaks. However, short-term holders are closer to breaking even, making them more likely to react to price changes.